Market close: Shares rise as dividend yields draw investors

Telecom rises as the nation's relatively high dividend yields draw investors but Infratil falls after taking a charge against its British airport investments.

The NZX 50 fell 2.66 points, or 0.1%, to 3957.91. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was a lower-than-average $70.6 million.

"Savers are being penalised," says David Price, a broker at Forsyth Barr. "People are being forced off the sidelines and into high risk investments than normally. It's a global phenomenon. New Zealand is one of the high-yielding markets."

Telecom rose 1.3% to $2.41. At today's price it has a dividend yield of 12.5%, while a one-year term deposit offers about 4.27%.

Fisher & Paykel Appliances, which gets more than 50% of sales in US dollars, rose 1.3% to $2.43 as the kiwi held near a two-week low at 81.60 US cents.

Infratil fell 0.5% to $2.18. The company took a $43.9 million charge to write down the carrying value of the Glasgow Prestwick and Kent airports, which will be reflected in the first-half net profit, the company says in a statement.

The investment firm is trying to sell the unprofitable airports and has already written down their value by $60.4 million in the past two financial years.

"There's been a for-sale sign there for quite some time," Mr Price says.

Fletcher Building, the biggest construction and building materials group on the NZX 50, fell 1.4% to $7.24 even after Real Estate Institute figures showed home sales rose last month and the national median house price hit a record.

Air New Zealand, the government-controlled airline slated for a partial selldown, rose 0.8% to $1.24, with 9.6 million shares changing hands, the biggest daily volume since July 2008.

AMP, the Australian wealth manager, was up 3.2% to $5.89 and Auckland International Airport fell 0.8% to $2.655. OceanaGold, operator of the Macraes gold field, rose 2.8% to $4.42.

TrustPower, the utility controlled by Infratil, was up 1.6% to $8.53 and PGG Wrightson fell 2.9% to 33 cents.

Among smaller stocks, Windflow Technology dropped 21% to 15 cents, while AWF Group climbed 1.6 % to $2.50.

Contact Energy fell 0.2% to $5.35 and carpet maker Cavalier shed 1.1% to $1.85.

(BusinessDesk)

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NZ Market Snapshot

Forex

Sym Price Change
USD 0.7845 0.0017 0.22%
AUD 0.8994 0.0002 0.02%
EUR 0.6203 0.0010 0.16%
GBP 0.4929 0.0003 0.06%
HKD 6.0847 0.0131 0.22%
JPY 84.0120 0.0180 0.02%

Commods

Commodity Price Change Time
Gold Index 1233.8 -1.760 2014-10-14T00:
Oil Brent 85.4 -4.470 2014-10-14T00:
Oil Nymex 81.2 -4.530 2014-10-14T00:
Silver Index 17.4 0.035 2014-10-14T00:

Indices

Symbol Open High Last %
NZX 50 5145.9 5168.7 5145.9 0.33%
NASDAQ 4246.2 4281.3 4213.6 0.32%
DAX 8765.4 8854.4 8812.4 0.15%
DJI 16321.9 16463.7 16321.1 -0.04%
FTSE 6366.2 6403.4 6366.2 0.42%
HKSE 23087.5 23230.3 23048.0 0.67%
NI225 15009.8 15044.3 14936.5 -0.13%